Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions. While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Navigating these stocks isn’t easy, which is why StockStory helps you find Comfort In Chaos. That said, here are three volatile stocks best left to the gamblers and some better opportunities instead.
Travel + Leisure (TNL)
Rolling One-Year Beta: 1.40
Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.
Why Is TNL Not Exciting?
- Number of tours conducted has disappointed over the past two years, indicating weak demand for its offerings
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate
Travel + Leisure is trading at $63.30 per share, or 8.8x forward P/E. To fully understand why you should be careful with TNL, check out our full research report (it’s free for active Edge members).
BrightSpring Health Services (BTSG)
Rolling One-Year Beta: 1.37
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Are We Cautious About BTSG?
- Earnings per share have dipped by 46% annually over the past four years, which is concerning because stock prices follow EPS over the long term
- Investment activity picked up over the last five years, pressuring its weak free cash flow margin of 1.3%
- Low returns on capital reflect management’s struggle to allocate funds effectively
BrightSpring Health Services’s stock price of $34.08 implies a valuation ratio of 27.5x forward P/E. Dive into our free research report to see why there are better opportunities than BTSG.
Integral Ad Science (IAS)
Rolling One-Year Beta: 1.36
Processing over 280 billion digital ad interactions daily through its AI-powered technology, Integral Ad Science (NASDAQ: IAS) provides a cloud-based platform that measures and verifies digital advertising across devices, channels, and formats to ensure ads are viewable, fraud-free, and brand-safe.
Why Do We Think Twice About IAS?
- Revenue increased by 14% annually over the last two years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient
- Free cash flow margin is forecasted to shrink by 7.9 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
At $10.21 per share, Integral Ad Science trades at 2.7x forward price-to-sales. If you’re considering IAS for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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